Free IIA-CIA-Part1 Practice Test Questions 2026

Which of the following statements is true regarding the independent peer review process undertaken to fulfill the requirement for an external quality assessment?

A. Two individuals in the same internal audit activity may perform an independent peer review as long as they do not report to the same audit manager

B. Individuals from a separate but related organization such as an affiliate may perform peer reviews

C. Individuals working in separate internal audit activities may be considered independent as long as do not report to the same chief audit executive

D. Peer reviews are generally less cost-effective than hiring an external quality assessor

Senior management relies on the professional judgment of an internal auditor and uses outcomes of her audit work to make business decisions Which of the following personal qualities displayed by the internal auditor is most likely the foundation for this relationship?

A. Integrity

B. Negotiation skills.

C. Business acumen

D. Flexibility

Which of the following written documents typically offers the best evidence that internal auditors exercise due professional care in conformance with the Standards?

A. Internal audit charter.

B. Workpaper.

C. Audit report.

D. Code of ethics.

Which of the following is a way to demonstrate an individual internal auditor's competency through continuing professional development?

A. Create different training budgets for each of the internal auditors

B. Define average training hours per auditor as a team performance measure

C. Analyze internal audit client survey feedback following audits

D. Review training records for all internal auditors

Which of the following would be the best choice for a continuing professional development requirement for a newly created internal audit activity?

A. Require all internal auditors to create a training plan based on a competency selfassessment.

B. Require internal auditors to complete all of their training through webinars, to increase efficiency and avoid traveling

C. Require all internal auditors to become a member of The Institute of Internal Auditors.

D. Require internal auditors to create a training plan based on their areas of interest

Which of the following controls would best mitigate the risk of fraud in the bidding process?

A. Have a bidding committee open the tender bids.

B. Restrict the time to submit tender bids.

C. Keep minutes of pre-bid meetings.

D. Allow the higher tenders to rebid.

An organization has limited resources to spend on corporate social responsibility initiatives. Which is the most suitable approach to determine how these resources should be used?

A. Support a mix of environmental economic and social initiatives to ensure a balanced approach is taken

B. Survey employees and external stakeholders to see which causes are best suited to the organization.

C. Select corporate social responsibility initiatives that support the overall strategic goals of the organization

D. Conduct a financial analysis to determine where the most impact can be made with the budget available

Which of the following statements best describes how the internal audit activity obtains reasonable assurance that significant risks in the organization are identified and assessed?

A. The internal auditors review the organization's strategic plan, business plan, and policies, and have discussions with the board and senior management.

B. The internal auditors evaluate the adequacy and timeliness of management's reporting of risk management results.

C. The internal auditors interview staff at various levels and determine whether the organization's objectives, significant risks, and risk appetite are articulated sufficiently.

D. The internal auditors review recently completed risk assessments and related reports issued by senior management, external auditors, and other sources.

Which of the following would be a red flag for potential issues in the control environment?

A. Segregation of duties during preparation of the financial statements

B. Compensation structures that are based on commissions

C. A low rate of turnover in key financial positions

D. The presence of a whistleblower policy and fraud hotlinea

According to IIA guidance, which of the following actions by a new chief audit executive would be most appropriate to gain an understanding of the current level of knowledge, skills, and competencies required by an internal audit activity to fulfill its responsibilities?

A. Identify gaps in the activity’s proficiency, based on criteria defined by a widely accepted competency framework.

B. Have a quality assessment review performed by an expert external entity.

C. Identify a mature internal audit activity to serve as a benchmark for measuring the internal audit activity’s competence.

D. Assess whether members of the internal audit activity understand and apply the 11As mandatory guidance.

An existing Internal audit charter is currently under review for revision. Who is responsible for assuring that all required components are included?

A. The audit committee.

B. The head of legal and compliance.

C. The chief audit executive.

D. Senior management.

Which of the following survey questions would be most effective to identify ethics violations within the organization?

A. Are the performance targets in your department realistic and attainable?

B. Do your coworkers have the knowledge, skills, and training needed to perform their job duties?

C. Does your supervisor comply with laws and regulations affecting the organization?

D. Do you have sufficient resources, tools, and time to accomplish your work objectives?